Based on the survey of LEDinside,the LED research division under TrendForce,LEDinside indicated that the speed of LED market demand recovery in the first quarter of 2011 is slower than expected.Affected by inventory adjustment of the large-sized panel display market and the LED lighting market,LED manufacturers are facing the pressure of price reduction.
The extents of the LED price decrease for the large-sized panel display application vary as well.The largest decrease is the price for LED backlit TV which has dropped by 10%~15%.However,the LED specification development for the NB and monitor applications has become mature,and the price has plummeted to the bottom in the past two years.Therefore,the price merely decreased by 3%~5%,and the extent of decrease is limited.Besides,due to relatively stable demand for the mobile backlight products,the price is much more stable with a slight decrease of 3%,compared with products of other specifications.As for high power LED lighting applications,affected by inventory adjustment,the price has dropped dramatically,and average price has fallen by 15%~20%.
Numerous Players in the TV Backlight Market to Raise Price Competition
Due to the weak TV sales in 1Q11,high TV-related material inventory and high TV inventory,the speed of LED market demand recovery is slower than expected.Moreover,many LED manufacturers have increased their capacities to raise the TV backlight market share since 2010.Therefore,the 5630 price faces a much fiercer competition.Moreover,with TV vendors'LED TV price promotion,the 5630 price has decreased by 10%~15%in 1Q11.
Since the second and the third quarters are traditionally peak seasons of the LED industry,and every TV vendor has gradually increased purchase orders since March to avoid LED shortage which occurred in the first quarter of 2010.The extent of the decrease in LED price of 2Q11 is expected to narrow.
